Summary of Key Points
This article discusses the issue of wealth disparity in the age of AI: Unlike the internet in the past, which connected people and allowed everyone to share the benefits, AI directly replaces jobs, concentrating the wealth in the hands of a few who possess the computing power and models. Current American policies (such as cutting welfare and reducing taxes for the wealthy) are exacerbating this disparity. We are experiencing a phenomenon similar to the “Engels Pause” during the Industrial Revolution, where the benefits of technology are first absorbed by giants, leaving ordinary people to go through a difficult period. The article offers advice for individuals: leverage AI, develop skills that AI cannot replace, and call for more equitable policies.
Why Does AI Widen the Wealth Gap? Because It Doesn’t Help You; It Takes Your Jobs
The internet (e.g., Taobao, WeChat) acted as a connector, enabling small businesses to sell products and ordinary people to find jobs, allowing everyone to benefit to some extent. However, AI replaces human tasks—jobs like customer service, content writing, and basic coding that previously required multiple people can now be handled by a single AI model. The wealth dynamics driven by AI are based on cognitive monopolies: you need money to build data centers, purchase Nvidia GPUs, and train models, which are out of reach for most people. For example, Meta (the parent company of Facebook) cuts jobs not because it’s losing money but to save funds for building massive data centers and purchasing expensive GPUs. In the eyes of these giants, employees become costs rather than assets that create value. As a result, the wealthy earn exponential amounts of money from computing power, while the poor earn fixed wages and cannot keep up. Federal Reserve data shows that 1% of Americans own 32% of the wealth, compared to just 2.5% for the bottom 50% of the population; Elon Musk’s wealth even exceeds that of Rockefeller in the 19th century.
American Policies Fuel the Gap: Cutting Benefits for the Poor, Giving Money to the Rich
If AI is the engine driving the widening wealth gap, current American policies are accelerating this trend:
1. Eroding the Safety Net for the Poor: During Trump’s second term, food stamps, medical subsidies, and low-income housing assistance were cut, making life harder for 90% of the population.
2. Giving Gifts to the Rich: Tax cuts and reduced regulation have increased the wealth of corporations and the wealthy (there has been a surge in sales of multimillion-dollar homes and private jets).
3. Tariffs Cause Inflation: Tariffs drive up prices, but the rich can invest in AI stocks to hedge against inflation, while the poor see their wages shrink (since 10% of people own 90% of the stock market).
We Are in an AI-Driven “Engels Pause”: Technology Benefits First Go to the Big Players
Economics refers to a “Engels Pause” during the Industrial Revolution, when the steam engine doubled productivity but workers’ wages did not increase, and their living standards declined as profits went to capitalists. It took decades for unions to emerge and education to become more widespread before the benefits of technology reached the general population. We are now in an AI version of this period: AI increases productivity, but the benefits are being taken by tech giants (like Nvidia and Meta). 65% of Americans do not use AI and yet fear job loss. History shows that technology will eventually benefit everyone (e.g., smartphones are now accessible to the poor), but this may take a generation, during which ordinary people must endure unemployment and stagnant wages.
How Can Ordinary People Avoid Being Replaced by AI? Focus on Two Key Areas
Technology is not neutral, but we can proactively respond:
1. Shift from Selling Time to Leveraging Tools: Stop relying on wages; find tools that can amplify your value (AI is a powerful tool). For example, use AI to write articles or design, increasing your output significantly, or own assets (stocks, intellectual property, copyrights) that generate income for you.
2. Develop Skills Unreplaced by AI: AI relies on historical data for predictions; therefore, skills like solving complex problems, genuine empathy (AI can write comforting messages but cannot offer emotional support), and creative imagination (which AI cannot replicate) are essential.
3. Advocate for Fair Policies: Push for policies that require AI companies to share the benefits of their data (they use data from all humans to train models) or strengthen anti-monopoly measures to prevent giants from monopolizing computing power.
In summary, in this age of AI, don’t become someone who is “folded” by algorithms; find your own value that cannot be calculated or predicted by machines.